Financial highlights for the first quarter ended March 31, 2017 (Q1 2017) include:

Revenues of $4.3 million, down 30% over Q1 2016

Gross margins of 57%, down 2 percentage points over Q1 2016

Operating expenses of $3.1 million, a reduction of 32% over Q1 2016

Adjusted EBITDA loss of $0.4 million, an improvement of $0.3 million over Q1 2016

Net loss of $0.7 million, an improvement of $0.2 million over Q1 2016

Cash of $11.5 million, or Cdn. $ 0.89/share, up $0.4 million over Q4 2016

Order Bookings of $5.2 million, down 24% over Q1 2016

Order Backlog of $5.3 million, down 7% over Q4 2016

Financial Review

Total revenue for Q1 2017 was $4.3 million, down 30% over the same period in 2016 and down 31% over Q4 2016. New Order Bookings for Q1 2017 were $5.2 million, an increase of 18% over Q4 2016.

“Redline ended Q1 2017 showing quarter over quarter growth in Order Bookings as our plan to diversify markets and introduce lower priced products starts to show an impact,” stated Robert Williams, Redline CEO. “However, this growth in orders is not yet reflected in revenue growth, which is down quarter over quarter and year over year.”

Overall gross margin for Q1 2017 was 57%, up one percentage point over Q4 2016 and down two percentage points over the same period in 2016.

Overall operating expenses for Q1 2017 were $3.1 million, an improvement of 32% over the same period in 2016 and an improvement of 14% quarter over quarter. The decrease in operating expenses was largely the result of the cost reduction initiative implemented during the fourth quarter of 2016 to reduce compensation costs and contractual costs.

Adjusted EBITDA loss for Q1 2017 was $0.4 million, an improvement of $0.3 million over the same period in 2016, but down $0.7 million over Q4 2016.

Net Loss for Q1 2017 was $0.7 million, or ($0.04) per share as compared to a Net Loss of $0.9 million, or ($0.05) per share in the first quarter of 2016.

At March 31, 2017, Redline held cash of $11.5 million, up $0.4 million from December 31, 2016.

Conference Call and Webcast – May 8th, 2017 at 8:00 a.m. ET

A conference call and webcast to discuss the results has been scheduled for Monday May 8, 2017 at 8:00 a.m. Eastern Time. To participate, please dial 1-647-427-7450 approximately 10 minutes before the conference call, and provide passcode 12983263. A recording of the call will be available through May 16, 2017on Redline’s website or by dialing 1-416-849-0833 and entering passcode 12983263.

About Redline Communications
Redline Communications (www.rdlcom.com) is the creator of powerful wide-area wireless networks for the most challenging applications and locations. Used by oil and gas companies to manage their assets, militaries for secure battlefield communications, municipalities to remotely monitor highways, utilities and other infrastructures, and telecom service providers to deliver premium services, Redline’s powerful and versatile networks reliably and securely deliver voice, data, M2M and video communications for mission-critical applications.
For more information visit www.rdlcom.com.

To better assess the health and growth of the Redline’s business, the Company reports on several non-IFRS metrics, including “Orders or Bookings”, “Shipped or Shipments”, “Backlog”, “EBITDA”, “Adjusted EDITDA”, and “EPS excluding non-cash gain (loss) on fair market value of financial instruments”. Further information including definitions of these measures and a reconciliation to their closest IFRS measures, if applicable, can be found in the Company’s Management Discussion and Analysis for the three months ended March 31, 2017 (“Q1 2017 MD&A”), copies of which are available on SEDAR at www.sedar.com. Further details on the three months ended March 31, 2017 can be found in the condensed consolidated interim statement of financial position, condensed consolidated interim statement of comprehensive income, condensed consolidated interim statement of changes in equity and condensed consolidated interim statement of cash flows reproduced at the end of this press release. The selected financial information included in this release is qualified in its entirety by, and should be read together with the Condensed Consolidated Interim Financial Statements of the Company for the three months ended March 31, 2017 and the Q1 2017 MD&A.

Forward Looking Statements

Certain statements in this release may constitute forward-looking statements or forward-looking information within the meaning of applicable securities laws. In some cases, forward-looking statements can be identified by terms such as “could”, “expect”, “may”, “will”, “anticipate”, “believe”, “intend”, “estimate”, “plan”, “potential”, “project” or other expressions concerning matters that are not historical facts. Readers are cautioned not to place undue reliance upon any such forward-looking statements. Such forward-looking statements are not promises or guarantees of future performance and involve both known and unknown risks and uncertainties that may cause the actual results, performance, achievements or developments of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements, by their nature, are based on certain assumptions regarding expected growth, management’s current plans, estimates, projections, beliefs, opinions and business prospects and opportunities (collectively, the “Assumptions”). While the Company considers these Assumptions to be reasonable, based on the information currently available, they may prove to be incorrect.

Many risks, uncertainties and other factors could cause the actual results of Redline to differ materially from the results, performance, achievements or developments expressed or implied by such forward-looking statements. These risks, uncertainties and other factors include but are not limited to the following: significant competition, competitive pricing practices, cautious capital spending by customers, industry consolidations, rapidly changing technologies, evolving industry standards, frequent new product introductions, short product life cycles and other trends and industry characteristics affecting the telecommunications industry; any material, adverse affects on Redline's performance if its expectations regarding market demand for particular products prove to be wrong; any negative developments associated with Redline's suppliers and contract manufacturing agreements including the Company's reliance on certain suppliers for key components; potential penalties, damages or cancelled customer contracts from failure to meet delivery and installation deadlines and any defects or errors in Redline's current or planned products; fluctuations in foreign currency exchange rates; potential higher operational and financial risks associated with Redline's efforts to expand internationally; a failure to protect Redline's intellectual property rights, or any adverse judgments or settlements arising out of disputes regarding intellectual property; changes in regulation of the wireless industry or other aspects of the industry; any failure to successfully operate or integrate strategic acquisitions, or failure to consummate or succeed with strategic alliances; and Redline's potential inability to attract or retain the personnel necessary to achieve its business objectives or to maintain an effective risk management strategy (collectively, the "Risks").

For additional information on these Risks, see Redline's most recently filed Annual Information Form ("AIF") and Annual MD&A, which are available on SEDAR at www.sedar.com and on the Company's website at www.rdlcom.com. Redline assumes no obligation to update or revise any forward-looking statements or forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by law. All forward looking statements contained in this release are expressly qualified in their entirety by this cautionary statement.